Some of the exquisite clothing stores are expected to close in the coming years. Major brand stores will close in 2021. This article brings you famous clothing stores of brands like Christopher Banks that have shut down and those you would no longer find glittering around at night in the United States markets.
Famous Clothing Stores Closing In 2021
Victoria secret is owned by L Brands. This company announced that it would be closing two hundred and fifty stores in Canada and the US in May. Three Pink stores and two hundred and thirty-five stores of Victoria secret will be closed in the US.
The rest of the stores will be present in Canada. In the US, 235 Victoria’s Secret and three Pink stores will permanently close, and the rest will be in Canada. Forbes’s research says that in the first quarter of 2020, the net sales of Victoria’s Secret fell by forty-six percent.
JCPenney could not pay debts and is under a debt of around 4 billion dollars. CNN gives this news. JCPenney’s CEO released his statement that their stores are getting closed because of their company’s outstanding debt.
Around 242 stores will close in the US in the year 2021 and 2022. In 2020, JCPenny closed six department clothing stores in North Carolina, Montana, Ohio, New York, South Carolina, and Oklahoma. Last year, the company announced bankruptcy, and 154 stores would close these summers.
In the United States, twenty-nine Gap stores closed, and even the online shopping of this parent company is affected. The company website stated that they are committed to thoughtfully, quickly, and decisively closing stores that are not performing well and are unfit for its vision.
Gap has planned to close some stores and open more under banners like Athleta and Old Navy. Business Insider gave this news. In 2020, Gap closed around 40 stores all over the world and planned to shut down 230 more in two years.
This company announced that it would close around one hundred and twenty-five stores in the next three years. A previous report of Business Insider says that the stores that permanently close in 2021 are 1/5th of the total stores of Macy. The parent company also states that several offices would be closed, and 2000 corporate jobs would be cut.
Jeff Gennette (the CEO of Macy) states that the department stores are changing their structure and aim for lower costs. Many stores of Macy are expected to close to reduce duplicate work and bring together their teams.
It was one of the stores going out of business in 2020. Guess stated in June over 100 store closures for the next eighteen months. Carlos Alberini (the CEO of Guess) gave a statement to Bloomberg analysts that the expected demand and recent performance of the stock under the coronavirus pandemic conditions portfolios need to be changed. The company announced the stores would close to bring more profit.
The 91 remaining stores of this parent company will close this year. In 2019, nine stores were closed. In January 2020, thirty-one stores closed in 22 states of the US. According to the report of Business Insider, 25 stores will be shut down by the end of the year 2022.
Tim Baxter (the CEO of Express) states that the company expects to return to the operating margin of mid-single-digit. It will be achieved by a blending of low-single-digit sales increase of Express, cost reductions, and margin expansion. There’s a clear path to improvement, but it may take some time.
Neiman Marcus announced that it would close its low-price stores (most of them) last year in May. But, the regular store closures will not happen. Neiman Marcus stated this in an interview with USA Today. The company announced bankruptcy this year and its CEO Geoffroy van Raemdonck gave a statement.
Many stores will close this year because Neiman Marcus faces a disruption that never happened before and was not expected. But like many businesses affected by the coronavirus pandemic, this parent company too faced issues. Their department stores will close because of inevitable problems.
In May 2020, Nordstrom announced that 19 stores would permanently close in the coming years. In Arizona, Colorado, California, Florida, Maryland, New Jersey, Oregon, Texas, Virginia, and Puerto Rico, sixteen stores will close forever, according to a report of Business Insider.
After announcing the closing of stores in May 2020, this company announced a few weeks later that the Jeffrey stores (department apparel stores) in New York City, Atlanta, and Palo Alto would also shut down.
The Children’s Place
In June 2020, The Children’s Place announced that 300 stores would permanently close. This brand, as we know, is a children’s clothing company. In a recent interview, it said that around 200 or 250 stores of the parent company would close, and even one hundred more department stores would be shut in 2021.
CEO Jane Elfers stated in a press release that they aim to structurally position and accelerate optimization due to which the stores will close. The company announced that it focuses on increasing and utilizing the resources and digital sales. Online sales continue regardless of the coronavirus pandemic. But, closing the stores of The Children’s Place has a latent transformation strategy.
In November 2019, this company announced that it would close 51 stores around February all over the United States. According to a report of the Business Insider, Transform Holdco (which is the parent company of Kmart and Sears) declared that 51 Sears’ stores would close and forty-five Kmart ones will shut down. After the store closures, 182 Kmart and Sears stores will remain open for department stores and online shopping.
Christopher and Banks
This company announced in 2018 that it aims to close 40 clothing stores by 2020. This famous brand lost 8.8 million dollars in the first four months of 2018. The online sales of Christopher and Banks increased by 10.7 percent. It is a report according to BizJournals.
Star Tribune mentioned in one of its reports that Christopher Banks was removed from the list of the New York Stock Exchange. In 2019, it failed to meet the minimum marketing price of 15 dollars. The store closures can be attributed to these reasons.
This fashion brand was already facing challenges before the coronavirus pandemic began. Tuesday Morning temporarily did store closures because of the rising issues. It sells other merchandise like home decor, body goods, body care items, crafts, sporting goods, toys, and food.
The company announced its bankruptcy in May and declared its aim to restructure several operations. Tuesday Morning hopes to continue its business. According to a September 30th, this famous brand had around 240 large department stores with additional 250 stores in forty states of the US. It is the data after shutting down 197 stores.
We know it is among the most famous fashion and clothing brands. But the company announced in June 2020 that 1200 stores across the globe would be shut down. According to the reports of Business Insider, it is believed that some stores will close in the next two years because Zara wants to focus more on online sales and to shop through its app.
Inditex has not yet declared the locations they plan to close in 2021. But, the statement says such store closures are for the company’s benefit and come at the end of their useful business. The CEO of this popular women and men Wearhouse noted that its goal is to create integrated stores. The company announced to close the stores because they aim to provide uninterrupted service everywhere and on all devices through online shopping sites and apps.
We know that due to the coronavirus pandemic, gatherings have been restricted. It means no parties, decorations, streamers, and balloons. If people do not require costumes, the stores will naturally not have enough customers and will eventually close. But, Party City has been facing a crisis even before COVID-19.
Seventy-six stores of the company have been closed. According to a survey, Party City was located at 739 spots in 2019. It faced more financial problems and lost 432 million dollars by 2020. So, the company announced closing Party City stores further.
This article brought you the stores that will close this year or have closed in the past two years. Several brands like Brick and Mortar stores and Destination Maternity have announced the permanent closure of many stores because of the coronavirus pandemic, indebtedness, and enhancement of their online sales. Online shopping sites are not expected to close.
Some CEOs stated that since the parent companies wish to make strategic changes, they have shut down some stores. Famous brands like Neiman Marcus, Lord Taylor, and Christopher Banks hope that such improvements would radically change the way people shop their wardrobe in the long term.